Sign in

You're signed outSign in or to get full access.

TI

TELEFLEX INC (TFX)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 revenue was $700.7M, down 5.0% YoY but slightly above consensus ($700.7M vs $699.4M); adjusted diluted EPS was $2.91, down 9.3% YoY and modestly above consensus ($2.91 vs $2.88) . Values retrieved from S&P Global.*
  • Management raised GAAP revenue growth guidance to 1.28%–2.28% (FX headwind reduced to ~17 bps) and maintained adjusted constant-currency revenue growth at 1%–2%, but lowered GAAP EPS to $6.51–$6.91 and adjusted EPS to $13.20–$13.60 due to an estimated ~$55M tariff impact recorded in COGS, partially offset by a $300M ASR and expense control .
  • Segment/product dynamics: Vascular Access (+0.6% reported; +1.9% adj cc) and Interventional (+2.1% reported; +3.2% adj cc) grew; OEM (-27.2%) and Interventional Urology (-11.0%) dragged, while Asia declined (-12.4% reported; -9.7% adj cc) on China volume-based procurement .
  • Strategic catalysts: FDA clearances for AC3 Range IABP and expanded QuikClot Control+ indications, continued strong Barrigel growth, and active exploration of a spin or sale of “NewCo”; Biotronik VI acquisition expected to close by end Q3 2025 .
  • Tariff mitigation plan (USMCA compliance, supply chain optimization, pricing) underway; net leverage ~1.8x and ASR completed (2.2M shares at $135.23) provide balance sheet and capital-return support .

What Went Well and What Went Wrong

What Went Well

  • Vascular Access and Interventional posted growth; PICCs grew double-digits and EZ-IO executed well; intra-aortic balloon pumps (IABP) grew strong double digits in the Americas, bolstered by AC3 Range clearance and competitor quality issues .
  • Barrigel continued strong double-digit growth; management expects sustained momentum in Palette; QuikClot Control+ expanded indications add >$150M to U.S. SAM, supporting Emergency Medicine .
  • Management narrowed FX headwind assumptions and raised GAAP revenue growth guidance; quote: “Were it not for the impact of tariffs… we project that our full-year results for 2025 would fall within our previously stated guidance ranges.” — Liam Kelly .

What Went Wrong

  • OEM revenue fell 27.2% on contract in-sourcing and customer inventory management; sequential improvement in orders noted late in Q1, but headwinds persist near term .
  • Interventional Urology declined 11.0%; UroLift remained pressured in U.S. office site of service amid final-year reimbursement changes, though APAC posted solid double-digit growth .
  • Asia declined 12.4% reported (9.7% adj cc) primarily due to China volume-based procurement; management anticipates sequential improvement through 2025 but acknowledged transitory $100M revenue headwinds across UroLift, OEM, and China VBP .

Financial Results

MetricQ3 2024Q4 2024Q1 2025
Revenue ($USD Millions)$764.4 $795.4 $700.7
GAAP Diluted EPS ($)$2.36 $(2.95) $2.07
Adjusted Diluted EPS ($)$3.49 $3.89 $2.91
Gross Margin % (GAAP)56.3% 55.3% 55.6%
Gross Margin % (Adjusted)60.8% 60.1% 60.4%
Operating Margin % (GAAP)19.5% (13.9)% 17.9%
Operating Margin % (Adjusted)27.3% 27.6% 24.7%

Consensus vs Actual (Q1 2025)

MetricConsensusActual
Revenue ($USD Millions)699.4*700.7
Adjusted Diluted EPS ($)2.88*2.91

Values retrieved from S&P Global.*

Geographic segment revenue ($USD Millions)

SegmentQ3 2024Q4 2024Q1 2025
Americas$433.3 $540.8 $475.7
EMEA$150.2 $161.0 $151.2
Asia$98.3 $93.6 $73.8
Total$764.4 $795.4 $700.7

Global product category revenue ($USD Millions)

CategoryQ3 2024Q4 2024Q1 2025
Vascular Access$180.9 $189.3 $182.4
Interventional$149.9 $160.4 $137.5
Anesthesia$101.1 $95.3 $86.6
Surgical$111.7 $121.9 $105.8
Interventional Urology$83.4 $84.9 $71.0
OEM$82.6 $85.4 $63.9
Other$54.8 $58.2 $53.5
Total$764.4 $795.4 $700.7

Selected KPIs

KPIQ4 2024Q1 2025
Cash & equivalents ($USD Millions)$327.7 $317.5
Net accounts receivable ($USD Millions)$459.5 $464.5
Inventories ($USD Millions)$600.1 $644.0
Cash from operations ($USD Millions)n/a$73.3
Net leverage (x)~1.5x ~1.8x

Non-GAAP reconciliations: Adjusted EPS reflects $0.84 of net adjustments (e.g., intangible amortization $0.93, ERP $0.11; partially offset by acquisition FX hedge benefit) leading to adjusted EPS of $2.91 in Q1 2025 .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
GAAP Revenue GrowthFY 2025(0.35)% to 0.65% 1.28% to 2.28% Raised
Adjusted Constant-Currency Revenue GrowthFY 20251.00% to 2.00% 1.00% to 2.00% Maintained
GAAP Diluted EPSFY 2025$8.85 to $9.25 $6.51 to $6.91 Lowered
Adjusted Diluted EPSFY 2025$13.95 to $14.35 $13.20 to $13.60 Lowered
Adjusted Gross Margin %FY 2025n/a58.25% to 59.00% Set
Adjusted Operating Margin %FY 2025n/a24.60% to 25.00% Set
Tariff impact (COGS)FY 2025n/a~$55M New headwind
FX impact to GAAP revenueFY 2025~180 bps headwind ~17 bps headwind Improved
Share repurchaseFY 2025$300M ASR planned $300M ASR completed (2.2M shares at $135.23) Completed

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2024 & Q4 2024)Current Period (Q1 2025)Trend
Tariffs/macroQ4: flagged potential tariff exposure; policy uncertainty noted Quantified ~$55M COGS impact; ~50% China, ~35% Mexico; mitigation planned Escalated headwind; mitigation underway
Supply chain/OEMQ3: OEM softness (vertical integration, inventory mgmt) ; Q4: OEM headwinds to continue into 2025 OEM -27%; orders improved late in Q1; low point expected early 2025 Near-term trough; sequential recovery expected
Product performance (IABP)Q3: expected Q4 uplift from competitor issues Americas strong double-digit IABP growth; AC3 Range transport pump cleared Benefiting from competitor dislocation
Regional trends (China/APAC)Q3: doctor strike impacted growth Asia down on China VBP; sequential improvement expected through 2025 Headwind easing over 2025
Regulatory/legalItalian payback reserve impacted 2024 ; EU MDR costs ongoing MDR, ERP costs in adjustments; Italian payback referenced in non-GAAP Ongoing but manageable
Strategy: separationQ4: announced RemainCo/NewCo separation plan Significant inbound interest; parallel spin/sale tracks Active strategic alternatives
R&D/clinicalQ4: Biotronik VI acquisition rationale, free cell scaffold AC3 Range clearance; Ringer PBC IDE positive preliminary results; QuikClot Control+ expansion Pipeline strengthening

Management Commentary

  • “Our performance for the first quarter was in line with our expectations… Were it not for the impact of tariffs… we project that our full-year results for 2025 would fall within our previously stated guidance ranges.” — Liam Kelly, CEO .
  • “Adjusted gross margin was 60.4%… The year-over-year decrease was primarily due to continued cost… and unfavorable product mix, partially offset by cost improvement programs.” — John Deren, CFO .
  • “We are actively exploring strategies to mitigate our exposure to tariffs… focusing on USMCA exemptions in Mexico, optimizing supply chain… and pricing increases as contracts renew.” — John Deren .
  • “We have received significant inbound interest in acquiring NewCo… maximizing shareholder value… including a potential sale in parallel with the spin.” — Liam Kelly .

Q&A Highlights

  • Tariffs mitigation timing and levers: USMCA exemptions (targeting 90% U.S. component threshold), bonded warehouse strategies, sourcing changes, and pricing actions; ~$55M impact excludes mitigation and starts hitting P&L mainly in Q3–Q4 .
  • Pricing: plans to increase pricing by 30–50 bps in 2025, with potential acceleration if tariffs persist .
  • NewCo transaction: healthy mix of strategic and sponsor interest; open to sale of entire NewCo or components; timing still early; guiding principle is shareholder value .
  • OEM outlook: -$7M contract impact per quarter in H1; destocking peaked in Q1; sequential improvement expected as orders pick up .
  • IABP dynamics: U.S. customers switching away from competitor; Q4 uplift largely capital; consumables tail (catheters) expected to follow; Teleflex catheter + pump fiber-optic advantage .

Estimates Context

  • Q1 2025 results modestly exceeded consensus: revenue $700.7M vs $699.4M; adjusted EPS $2.91 vs $2.88. Values retrieved from S&P Global.*
MetricConsensusActual
Revenue ($USD Millions)699.4*700.7
Primary EPS / Adjusted EPS ($)2.88*2.91
# of EPS estimates12*n/a
# of revenue estimates11*n/a

Values retrieved from S&P Global.*

Consensus implications: modest beat on revenue and EPS; tariff headwinds and lowered FY EPS guidance suggest estimates may drift lower for FY EPS while revenue estimates could remain stable given maintained adj cc growth .

Key Takeaways for Investors

  • Q1 delivered slight top- and bottom-line beats versus consensus, but YoY declines and lowered EPS guidance reflect tangible tariff headwinds; watch policy developments and Teleflex’s mitigation cadence (USMCA, pricing) for EPS trajectory .
  • Strong momentum in Vascular Access, Interventional, EZ-IO, and Barrigel helps offset OEM/UroLift; pipeline catalysts (AC3 Range, Ringer PBC, QuikClot Control+ expansion) support medium-term growth across hospital call points .
  • China VBP pressure is transitory per management; sequential Asia improvement expected through 2025 — monitor quarterly APAC trends for confirmation .
  • Strategic optionality: active exploration of NewCo spin/sale could unlock value; track milestones (Form 10 timing, buyer interest) and potential proceeds/allocation .
  • Biotronik VI acquisition (expected close by end Q3 2025) should expand cath lab presence; initial EPS accretion targeted; integration and U.S. commercialization (e.g., higher-margin mix) are key drivers .
  • Capital allocation supportive: $300M ASR completed; net leverage ~1.8x; continued dividend and opportunistic buybacks possible subject to strategic deals .
  • Near-term trading lens: tariff clarity, IABP share gains versus competitor, and NewCo transaction headlines are primary stock catalysts; medium-term thesis hinges on hospital-focused portfolio growth and successful tariff mitigation .